1. Betty contributes the following to ABC Partnership for a 25% interest:

• Cash $20,000
• Building:
  • $200,000 FMV
  • $160,000 Adjusted basis
  • $180,000 Nonrecourse mortgage

Prior to the contribution, ABC has $60,000 of accounts payable (nonrecourse liability) and a $100,000 recourse bank loan listing the existing partners by name.

1. What is Bettys outside basis in her partnership interest before debt relief? ________________
2. What is Bettys outside basis in her partnership interest? __________________
3. What is ABCs basis in the building? __________________

What is Bettys inside basis in ABCs new building?